MACD Rainbow



MACD Rainbow Interpretation:

For color mode 1 - The benefit for the technical analysis is limited.This serves as a simple example of how vary the colors of one indicator with the results of another one.
For lour mode 2 - The color intensifies with an intensifying signal. A more and more intense violet shows that an increasing trend is weakening and that a downward reversal is probable. The red will appear when a downtrend is weakening and an upward reversal is probable.
For color 3 - This is a way to view the MACD colored by overbought and oversold signals. Bullish and bearish signals are given when the MACD histogram crosses over 0 and can be seen as intensified depending on the color reflecting an overbought or oversold state of the security.

MACD Rainbow Calculation:

The MACD Rainbow allows you to add colors to the MACD curve depending on the characteristics of the other indicators. This is a great example of how you can add a new dimension to your indicators by varying their color as a function of other indicators.




Return from MACD Rainbow to Using Indicators

New! Comments

Have your say about what you just read! Leave me a comment in the box below.







From the writers...

"It is far better to show you how to trade on your own, than it is for you to depend on us to tell you what to trade and when"


Your E-mail Address
Your First Name
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Successful Forex Traders.


Get Chitika | Premium


The top five Trading Indicators as voted by you guys

Bollinger Bands
Stochastics
MACD
Moving Average
Parabolic SAR

To vote for what you find to be the most useful or for a full list of indicators please click here



If you have found this website helpful, please donate to show your support. The average donation is £7